After months of scrutiny, the District 4 Environmental Commission Thursday granted a state Act 250 land use permit to Vermont's lone Costco store to begin selling gasoline at its warehouse in Colchester.

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Costco proposes to build 12 new pumps and a small 'controller' building on the western side of its property adjacent to the end of Lower Mountain View Drive, and realign its existing parking lot in the process.

Lawyers for neighboring gasoline retailer R.L. Vallee (Maplefields) had strenuously battled to block the application, citing environmental concerns and the difficulty existing traffic going to and from Costco already causes its customers.

The commission found the project will increase traffic congestion in the already congested Exit 16 corridor off Interstate 89, and attached conditions to the permit.

The commission also ordered Costco to help defray some of the cost of the state's planned corridor improvements around Exit 16, but concluded that "proposed mitigation conditions will not cause unreasonable congestion or unsafe conditions" in the area.

R.L. Vallee's request that Costco be required to hire police officers to direct traffic was dismissed.

The commission also rejected Vallee's assertions that the Costco gasoline pumps would harm wetlands, water quality or the environment.

“It appears this was a deeply divided district Commission, and we echo Commissioner McNamara’s statement that “there is no feasible permit condition which can alleviate the traffic impact of the proposed project on its current scale,'" said Vallee. "We look forward to making that case and others in the appropriate courts of law.”

Costco has said it wants to compete aggressively for gasoline customers and all told U.S. Sen. Bernie Sanders last fall that it would have charged consumers 15-20 cents per gallon less than other Chittenden County gas stations in 2012.

Sanders believes added competition from Costco could help reduce pump prices in Vermont's largest gas market, prices which are routinely the highest in the state.